Report 1

Water Corporation: Management of Water Pipes

Audit focus and scope

This audit assessed if Water Corporation’s management of bursts, leaks and water loss from its pipes contributes to sustainable water supply. We had three main questions:

  • Does the Water Corporation understand the age, condition and performance of its pipes?
  • Does the Water Corporation learn lessons from leaks, bursts and water loss to manage future risks to its pipes?
  • Does the Water Corporation appropriately target the maintenance and renewal of its pipes to manage the risk of leaks, bursts and water loss?

Our audit focused on Water Corporation’s management of its pipes. It examined how it used the asset, condition and performance information it has to manage future risks of leaks, bursts and water loss from pipes. We met with Water Corporation’s key regulators and stakeholders; Economic Regulation Authority, Department of Water and Department of Health. The Public Utilities Office was also consulted.

We focused on the Water Corporation’s management of undetected leakage from water supply pipes. We did not review Water Corporation’s management of the unbilled water ‘loss’ or the lowest ‘loss’ technically achievable from the water supply system. We also did not review undetected water loss from service reservoirs and service connections because this is unrelated to pipes. The Water Corporation’s management of wastewater pipes, drainage services, desalination plants and water supply charges were also ‘out of scope’.

The audit was conducted in accordance with Australian Auditing and Assurance Standards.

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